\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 990 Sun Create Electronics Co.Ltd(600990) )
Event: the company released the annual report of 2021, and achieved a revenue of RMB 3.143 billion (- 20.27%) and a net profit attributable to the parent company of RMB 184 million (+ 7.99%) in 21 years; In Q4 of 21 years, the revenue was 1.824 billion yuan (- 36.77%), and the net profit attributable to the parent company was 218 million yuan (- 11.32%).
The scale of revenue shrank, but the profitability improved due to the increase of gross profit margin and the significant reduction of credit impairment loss. The revenue of 21 years decreased by 20.27% year-on-year, mainly due to: 1) the implementation of the new revenue standard for public safety products for the first time in 20 years, and the reduction of the impact of this factor in 21 years led to a 51.61% decrease in the revenue of this sector; 2) The revenue of sectorau cooking vehicles and staple food processing shelter decreased, and the revenue of mobile support equipment decreased by 38.55%. The performance of the company in 21 years increased by 7.99% year-on-year, and the performance was significantly better than the revenue, mainly due to: 1) the comprehensive gross profit margin of the company increased by 2.76pct to 19.77% in 21 years; 2) The provision for credit impairment loss decreased by 94 million yuan, and the income from asset disposal increased by 30 million yuan. To sum up, when the expense ratio increased to 15.07% (+ 3.70pct), the net profit margin of sales still increased by 1.58pct to 6.00%.
The inventory increased by 20.06% compared with the beginning of the period. At the end of the year, the company’s inventory was 1.718 billion yuan, an increase of 20.06% over the beginning of the period, of which the products in process and goods in inventory increased by 34.66% and 56.19% respectively year-on-year. The main reason may be the increase in inventory caused by the production of radar and radar supporting projects.
The listing platform of Zhongdian Bo micro adheres to focusing on the main responsibility and main business and promoting a new pattern of business development. As the listing platform of CEC Bo micro, the platform value deserves attention. Electronic equipment: backed by 38 strong radar institutes, the company occupies a leading position in the field of Meteorology and air traffic control radar. In the past 21 years, the company has further expanded the upgrading, overhaul, medium repair and technical services of low altitude surveillance radar equipment, and realized the development from a single service to multiple services. Industrial foundation: the company focuses on expanding the series products in the two technical fields of passive circuit and active circuit, focuses on the application of mass-produced complete equipment, and realizes the zero breakthrough of microwave components in space technology and products such as satellite borne and missile borne. Network information system: the company focuses on the main businesses such as safe city, Xueliang project, smart prison and smart transportation, continues to broaden new ideas for solutions in public security, political and legal affairs and transportation industries, consolidate market advantages and expand market share.
Profit forecast and investment suggestions
According to the annual report, reduce the revenue and increase the gross profit margin, adjust the EPS of 22-23 years to 1.36 and 1.58 (formerly 1.24 and 1.32), and add the EPS of 24 years to 1.95 yuan. With reference to the average 31 times valuation of comparable companies in 22 years, give the target price of 42.16 yuan and maintain the buy rating.
Risk tips
Product orders are less than expected; The progress of restructuring and professional integration is less than expected
